Taiwan Semiconductor Manufacturing Co faces mounting delays for its second fabrication plant in Japan, with construction now pushed to after July 2025 due to traffic congestion caused by its first facility.
Chairman C.C. Wei confirmed the postponement at the company’s June shareholders meeting, citing complaints from Kumamoto residents about heavy traffic volumes. The executive described experiencing hour-long commutes for trips that previously took 10-15 minutes.
The delay marks another setback for Japan’s semiconductor revival strategy. TSMC’s first Kumamoto plant began mass production in December 2024, producing 12nm to 28nm chips with initial orders going to Sony and Denso. The facility operates at 55,000 wafers monthly capacity.
The second facility was originally scheduled to break ground in early 2025 but has faced multiple postponements. Industry sources suggest the delays also reflect weaker-than-expected demand from Japanese clients for the plant’s planned 6nm and 7nm processes.
Japan has committed substantial resources to attract TSMC’s investment. The Japanese government subsidized the Kumamoto project with up to ¥476 billion ($3.2 billion), with total subsidies for both facilities reaching ¥1.2 trillion ($8 billion).
TSMC employs approximately 2,400 people at its Japan operations as of April 2025, highlighting the local economic impact driving infrastructure concerns.
The delays contrast with TSMC’s accelerated timeline for Arizona expansion, where the company recently completed its second facility ahead of schedule.
